Last minute snag with Sony dashes Apple’s plan to create own music-streaming servicePublished On: Fri, Sep 28th, 2012 | Tech Business | By BioNews
Apple’s plan create its own music-streaming service was dramatically dashed as the tech giant and Sony couldn’t agree on a per-song rights fee.
Sources familiar with the matter, the deal between Sony/ATV, the world’s largest music publisher, and Apple couldn’t be accomplished due to this last minute snag.
According to The New York Post, those rights are usually tenths of a penny per stream, sources said.
Sony/ATV was looking for a higher rate, the report said.
Leaving the two groups will make it harder for companies like Pandora to negotiate future rights deals, the paper said.
According to the report, Sony/ATV’s rejection of Apple’s terms for its streaming service is a rare defeat for the California based firm.
Apple needed to negotiate rights from the individual rights holders and not simply from Ascap and BMI as Pandora did because it was looking to operate a souped-up streaming service, sources said. (ANI)